❖ የሥራና ክህሎት ሚኒስቴር
Ministry of Labor and Skills
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2. Elaborate how depreciation is calculated for tax purpose.
3. How is Loss Carried forward treated in taxation? Explain
Answer (2)
Depreciation for tax purposes can be calculated using the straight-line, declining balance, or unit of production methods, providing guidelines on how assets lose value over time. Loss Carry Forward allows businesses to apply prior year losses to future taxable income, providing tax relief. Both concepts are critical for effective financial management and tax planning. ;
Depreciation for tax purposes can be calculated using methods like straight-line, declining balance, or unit of production, which help allocate an asset's cost over its useful life. Loss Carry Forward allows businesses to offset future profits with prior losses, helping to manage tax liabilities effectively. Both concepts are important for tax planning and financial management.
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